To Adapt or Not to Adapt: Costs, Benefits, and Financing of Adaptation in the EU

Estimates of climate impacts and of the potential to reduce these impacts through adaptation show the scale of benefits that can arise from investing in climate protection and climate adaptation in the EU. Assessments also show that the benefits of adaptation measures often exceed their costs, thus providing a strong economic rationale for investing in climate change adaptation. Current private and public financing levels for climate adaptation often fall short of what could be considered economically efficient. Challenges in implementing and financing adaptation measures result from uncertainty about future damages, financing restrictions, and lack of information. Also, climate adaptation responsibilities have to be clearly allocated between private and public actors. To close financing gaps, especially on the local level, access to new financing options that involve private and public actors have to be made available.